Archive for January, 2019
Despite a rough end to 2018, we’re off to a good start in the New Year. If earnings come out positively, that will be a boost in the right direction for stocks. Though, says Shah Gilani, we are at critical levels right now on the major indexes, if the Dow stays above 24,000 and the NASDAQ stays above 7,000, he’s all in.
On this episode of Varney & Co., host Stuart Varney, Shah Gilani, and the panel of experts discuss how the incredible defeat of Prime Minister Theresa May’s Brexit deal will affect the U.S. It’s a “non-event” to us, Shah says, and if there is a hard Brexit, he believes that the U.S. market, which is the strongest market in the world, will soar higher as money moves over here. Then, later, the experts discuss the fate of social media favorite Snap Inc. (NasdaqGS:SNAP) as its Chief Financial Officer, Tim Stone, leaves the company (and $19 million) after just eight months. What does this mean for Snap and its users? It may not be good news… Click here to watch.
Besides the U.S. and China saber-rattling over control of the South China Sea (see last week’s article), the reason the U.S. will never get what it really wants in a trade deal is because Chinese “trade” is how China plays its foreign policy game.
And they’re very dirty players.
What the U.S. needs to get out of a trade deal is for China to stop playing dirty, which it will never do.
Here’s what the Chinese have done using “trade,” how corrupt they really are, what the U.S. has already lost, and why any announced trade deal will only ever be fake news…
The chances of the U.S. and China, the two biggest economies in the world and the two remaining superpowers on the planet, amicably settling the trade tiff between them are between slim and none.
Fake news that midlevel U.S. negotiators had productive meetings with their Chinese counterparts this week was just that – fake news.
That’s because something else was happening this week between the U.S. and China.
The truth is there are two reasons, one insidious and one frightening, why a comprehensive trade deal will never be struck.
Next week, I’ll tell you what the Chinese have really been doing that makes an honest deal impossible.
But first, I’ll give you the frightening reason today.
It’s been brewing for years.
And it surfaced shockingly this week…
The shifting sands of 2018 turned Shah Gilani from a “raging” bull to one of a more cautious variety. But now, a week and a half into the New Year, it’s plain to see that the market wants to go up. According to Shah, we’re in the preliminary stages of a melt-up, but we aren’t out of the woods yet…
On this week’s episode of Varney & Co., the panel of experts discusses what earnings could bring. The market, which is jittery at best as we enter earnings season, desperately wants to see strong earnings, and if things go south, the market will undoubtedly take it on the chin. And before Shah is even comfortable with jumping back into the market, the Dow must reach one specific level… Click here to watch.
Dear Wall Street Insights & Indictments Reader,
Last Thursday, three former Credit Suisse bankers were arrested in London in connection with a fishing fraud aided and abetted by Mozambique government officials and other characters.
Indictments handed down by the United States District Court for the Eastern District of New York charged the bankers and their accomplices with bribery, money laundering, and securities fraud in connection with raising more than $2 billion for three suspect companies, including a tuna fishing business marketed as guaranteed by the government of Mozambique.
The companies, with proceeds from bond sales, allegedly generated cash to pay bribes and kickbacks by overpaying $713 million for equipment they bought from an accomplice.
Corporate investigations and risk consulting firm Kroll says $500 million of the money raised is missing.
More than $50 million was paid to the bankers and their cohorts in the form of kickbacks.
That doesn’t include $200 million in bank fees the conspiring borrowers paid their bank cronies.
It’s another story of greedy, loan-pushing bankers, paying bribes, getting kickbacks, canoodling with corrupt foreign heads of state and government officials, and bank compliance departments being circumvented like subway thugs jumping over turnstiles.
Here’s what happened behind the scenes…
Back in October, JPMorgan Chase & Co. (NYSE:JPM) analysts Eduardo Lecubarri and Nishchay Dayal warned that $7.4 trillion of global assets managed in passive funds could exacerbate a rout the next recession.
They were wrong, but at the same time, they were right.
We’re not in a recession.
But, the escalating selloff is weighing heavily on passive investors, especially in the highflying big-cap stocks that led indexes and index funds higher for ten years.
That means passive investors are losing money and could turn seriously active any day now.
If that happens, a crash may not be far behind – and we’re getting close to market levels that could trigger active selling by passive investors.
So, listen up: Here are the numbers that matter, what they’re telling us, and what you can do to protect yourself…
For most of last year, tech stocks were the momentum drivers; but now, after a tumultuous final quarter of 2018, momentum has reversed. There are no true leaders to look to, and an aura of negativity seems to permeate the market.
On the first episode of Varney & Co. in 2019, worries are still rampant when it comes to the government shutdown. But, as guest host Charles Payne points out, investors may be surprised (and relieved!) to know that the last time a shutdown coincided with the market falling was in 1990. Rather than focusing on that, Shah Gilani later reveals what investors should be focusing on as we enter the New Year – and a new, bearish-leaning market. Click here to watch.
The feds might be coming after the robots – finally.
Even here, as we start the New Year, I don’t have my hopes up. But I’ll take this good news.
On December 21, the SEC charged the country’s second-biggest robo-advisor, Wealthfront Advisers LLC, and a small defunct robo-adviser, Hedgable Inc., with misleading clients.
According to The Wall Street Journal, the two robo-advisors used “automated tools to create portfolios for clients, rather than relying on people to pick investments and councel customers through decisions,” misled clients by not monitoring accounts to prevent trades that created adverse tax consequences, illegally paid bloggers whose endorsements resulted in account openings, and, in the case of Hedgeable, used only 4% of client accounts to calculate company returns.
Here’s the $200 billion question (researchers at Backend Benchmarking say robo-advising makes up $200 billion of the investment and trading universe): Are do-it-yourself investors who rely on robo-advisors being shortchanged?
Today I’ll give you my answer
Plus, I’ll show you how to protect yourself.
And reveal how to profit as you do so…